Putin Attends Plenary Session of Annual Congress of the Russian Union of Industrialists and Entrepreneurs Part One

The meeting begins with Putin's remarks and the becomes a discussion with business leaders that's very illuminating. Yes, it's a long meeting 2:17, which makes for a long read. There's a video in Russian available along with the Russian transcript. What's happening in Russia is very dynamic with Putin noting it represents a new development model while referring to his speech to the Federal Assembly, to which other participants also give reference. In the future, I'll be referring to this and other meetings since they provide evidence of a new dynamic, which I've called Socialism with Russian Characteristics. Here's Part One the machine translated transcript:

Vladimir Putin: Dear Alexander Nikolaevich [Shokhin], Dear colleagues! Dear friends!

Thank you for the invitation. First of all, I would like to welcome the participants of the congress of the Russian Union of Industrialists and Entrepreneurs.

Alexander Nikolaevich has just told us: you have been working for a couple of days, all the key members of the Government have spoken today – I hope that the dialogue has taken place and many things have become clearer and clearer. And in general, it is good that the dialogue continues constantly.

I would like to thank you and your thousands of employees and enterprises for your work and contribution to the country's development.

Your reputable organization unites the largest companies that occupy leading positions in many branches of domestic production, play a key role in the economy as a whole, in industry, agriculture, finance, transport and other sectors.

What is very important, the Russian Union of Industrialists and Entrepreneurs is actively involved in the national agenda, has its own views and suggestions: what needs to be done to increase the pace and sustainability of economic growth, how to support the development of our country's regions, increase their industrial, technological, infrastructure and human resources potential, including in general, how to make our country stronger, more successful and more competitive.

Such an active and creative position of the Russian Union of Industrialists and Entrepreneurs and the business community as a whole is particularly in demand now, that is, it is always in demand, but now, due to certain circumstances, especially when the Russian economy is acquiring a fundamentally different quality and is beginning to develop according to a new model, as was mentioned recently in the Message to To the meeting.

Let me remind you that the maximum decline in Russia's GDP last year was recorded in June – this, in my opinion, is 4.7 percent. The reasons are well known – the sanctions war, unprecedented challenges in the global economy and trade, and in the whole system of international relations, and these problems, as you know, were not created by us. Challenges that Russia, and probably no other country in the world, has ever faced in modern history. This is all the basis, the reason for what I just said.

Since then-starting in July - our economy has nevertheless started to grow. These achievements are based on the hard work of thousands of companies and the work of many millions of specialists, their responsible, professional attitude to business, their desire for development, protection, and the development of their own country.

We see positive trends in the Russian economy gaining momentum, and in the second quarter of this year, we also expect a significant increase in GDP compared to last year.

What determines the state of domestic industries today? Is it shaping a new economic trend?

First. We have managed to compensate for the actual closure of Western markets and expand Russia's foreign trade contacts with countries in fast-growing regions of the world. As you know, in previous years, before all these crisis events and special operations – we were gradually focusing on rapidly developing markets.

Now the situation has developed in such a way that it turned out that we did not do it in vain, moreover, we even did it at a slower pace than we should have done, but nothing: we just continue this pace. Over the past year, our trade turnover with these regions of the world, with these countries, has grown at a double-digit pace and continues to increase.

By the way, I would like to add for reference: in general, Russia's foreign trade turnover in 2022 increased by 8.1 percent – to $ 850 billion, including exports increased by almost 20 percent – 19.9, and imports decreased by almost 12 – 11.7 percent. The trade surplus amounted to $ 332 billion – which is 70 percent more than in 2021. We are in the House of Music – that's such good music.

I would also like to mention Russian business leaders and their management teams, who managed to rebuild investment and trade chains in a short time under serious external pressure, set up logistics routes, and opened up new areas for cooperation and cooperation with predictable, conscientious foreign partners.

I must say, and I want to note this: of course, this is a credit to you and your teams, but we both know – so, in a family way-who gives advice to our ill-wishers, how to get more of us and where to infringe, but those who stayed here and really work turned out to be smarter, more energetic, more effective than those who left and give advice to our detractors there. And the success is obvious, I just mentioned it. It is also obvious that the State will continue to do everything necessary to strengthen such cooperation.

Second. Domestic demand adds well. It is estimated that in April we will reach the growth rate of retail turnover of at least five percent, and in real terms.

What is important here and what I would like to draw your attention to. This isn't about some random spike: according to experts, domestic demand has entered the trajectory of sustainable long-term growth. It is based on the stability of our labor market, an increase in salaries and incomes of citizens, as well as a reduction in inflation.

It is expected that by the end of March, inflation will be less than four percent. Different experts have different opinions, including those present here: someone says four, someone says less, someone says five-in this way or another. But it is clear that this will be the target inflation rate.

For comparison, of course, this will be lower than in the eurozone countries, which are endlessly waiting for the collapse of the Russian economy and are trying to convince themselves of this and our partners of this. Let us recall again the famous American writer who once said that the rumors about his death were greatly exaggerated. So it is with our economy. As of March 13, inflation is 7.6 percent, and by the end of the month, in early April, it will reach the target indicators.

The third thing I would like to draw your attention to. A year ago, the Western authorities twisted the hands of their companies and forced some of them, many of them, to leave the Russian market. At that time, foreign analysts predicted a depression and decline in the consumer sector, promised empty store shelves, a massive shortage of goods, and the failure of the service sector.

However, life was different. The Western countries themselves faced the same problems in full growth. It has reached the point where their leaders offer their citizens to switch to turnips instead of lettuce and tomatoes – turnips are a good product, but they will probably have to go to us for turnips, because the level of harvest in our country significantly exceeds the indicators that our neighbors in Europe have.

True, it's not their fault, let's say – it's the weather conditions, drought and so on, but nevertheless, it will be difficult to do without our fertilizers in order to increase the yield at home. In any case, I recall the Russian proverb: "Do not dig another hole, or you will fall into it yourself." It seems that this is exactly what is happening.

As for Russia, the vacant niches due to the departure of some European and American companies began to be occupied by domestic companies. The situation is similar to the one that developed eight years ago in our food market, when in response to sanctions we introduced our own restrictive measures, after which the rapid growth of the agro-industrial complex began.

Now there are even more opportunities and prospects for business development and expansion, and the Russian business should not miss them, otherwise, not even an hour, and some of the departed companies will want to return. This situation is, without exaggeration, unique for many of our companies. A timely investment decision today will certainly pay off handsomely tomorrow. This is true both for the manufacturing industry and for domestic tourism, for Russian brands in the consumer goods market, and so on.

I would also like to mention something else about the new model of economic growth.

First of all, it is on the basis of our own technological base, including in partnership with friendly countries, that we need to increase production capacity, open new enterprises, and create jobs throughout the country. I fully understand the threats that are taking place, and what the detractors point out to us, saying that in the medium term, Russia will have problems.

Yes, this is a threat that we should keep in mind. But I am absolutely convinced that we will overcome it too, because this is a medium-term perspective, and I urge you not to wait for the negative consequences of this medium-term perspective to come.: to prevent this from happening, you need to act right now. This audience understands what I'm talking about and is confident: this is how they will work.

The mechanisms of industrial mortgage and cluster investment platform have been launched to help this process. I ask the Government to keep their effectiveness under constant review with the help of feedback from entrepreneurs and regions. Such feedback is established, and it does not portend anything that it should somehow fall apart. On the contrary, I think that our interaction at the business level and at the level of administrations at all levels-sorry for the tautology – will only develop. Only in such a dialog can you really assess how convenient and popular these tools are.

And of course, the main criterion that the mechanism has worked is the volume of investment decisions made and the attracted financing. We will also monitor these parameters closely. Modern digital technologies and big data analysis allow the Government to do this virtually in real time, and we must pay tribute to the Government: our colleagues have learned how to do this, they have learned how to work in this mode and with these tools.

In this regard, we have another task, namely: the efficiency of management should reach a qualitatively new level. I repeat – both in business and in the public administration system, we need to actively develop digital platforms, master data-based management models based on big data. It is obvious that modern technologies, including the so-called lean technologies, need to be implemented everywhere, in all sectors of the economy and social sphere.

In this regard, I would like to remind you of the great work that was launched in 2019 within the framework of the national project to increase labor productivity in small and medium – sized enterprises throughout the country, and the result is there-there is already a result: these results are recorded at the national level.

I know that many large companies, including such companies as Rosatom, GAZ, KAMAZ and many others, also apply these approaches in their production facilities.

A significant effect of the introduction of lean manufacturing has also been observed in the military-industrial complex, which allows us to quickly increase the output of the products we need. I would also like to thank my colleagues for this work.

And, of course, as you know, the development of new production and management technologies should be accompanied by an influx of qualified personnel. There's no other way, of course. Much needs to be done to improve the effectiveness of training and retraining of young people and already established specialists.

Here I would like to mention a joint initiative of business and the Government – the federal project "Professionalism". As it was said in the Message, we will strengthen our work in this direction, so that in the next five years at least a million young people will take part in the project. They will receive a modern, high-quality education, skills and qualifications that guarantee an interesting, good and well-paid job.

I would like to draw the attention of the Government and our colleagues in the business community: these plans will require additional investments, of course, both from the state and from the business community. I hope for unity of approaches on this issue and a common interest in the results of this work.

Dear colleagues!

As I have already said, today there are huge opportunities in Russia for almost any field of activity, for any business, for launching promising, long-term projects in the consumer market, in the high-tech sector, in tourism, and in many other sectors of the economy.

Yes, of course, we still have to solve a number of systemic issues related to logistics, finance, infrastructure, and technology. But the number of unsolved tasks never decreases, because as the state grows and our economy grows, the number of tasks also increases, this is a natural process.

Today, at a meeting with colleagues from the Government, we will certainly discuss the progress of work in each of the key areas.

Additional initiatives in this regard have been announced, as I have already mentioned twice today, in the Message. I am sure that we will definitely implement them, overcome systemic challenges, and eventually achieve the desired results through the joint efforts of the government, business circles, and citizens.

Traditionally, we have a discussion scheduled during the plenary session. As far as I know, Alexander Nikolaevich has just mentioned this. I hope to hear your opinion on how to make the development of the domestic economy at the new stage more dynamic, more successful, so that it leads to a noticeable improvement in the quality of life of people across the country.

I would like to add something in this regard. I would like to emphasize that entrepreneurs in Russia have always played a great creative role in the pre-revolutionary era and in recent decades, taking on great responsibility for the development and development of territories, social security, education, healthcare, infrastructure, and charity, and they were justly proud of this, and they were the pride of our country. Many went down in history, the names of many are still being heard.

And today we see examples of such a dignified attitude to business, to the high mission of entrepreneurs who do not care where and in what conditions their companies, their people, their specialists work, who direct their entrepreneurial talent – and this is really talent – not only to extract some benefits, to overconsumption, but also and for the public good. Instead of working in offshore companies and withdrawing the funds received here for things that are, frankly, not essential, special programs are being launched to support employees and their families. Along with regional authorities, funds are allocated to roads, hospitals, sports and cultural facilities. In short, they make everyone's life better.

There should be more such initiatives that bring real benefits to people, and such projects should be interesting, of course, feasible for large, medium, small businesses, and federal subjects, if these projects are implemented jointly.

The state will do everything possible to support responsible businesses, those who are ready to fight for their business, for the well-being of their teams, the people who work for you, and for the well-being of all Russian citizens.

What else would you like to add in this regard?

First. Companies that are focused not on short-term results, but on stable development for many years to come, who invest resources in research and development, in creating their own technology platforms and trademarks-these companies, of course, should and will be supported-those for whom a long-term reputation and good name is not empty sound, but great value. They are the companies that have a strategic vision for the future.

As I have already said, we need a business that takes care of its employees, creates comfortable working conditions and invests in the development of specialists ' knowledge and skills, pays special attention to their families and children, and is well aware that family well – being is the basis for demographic development, increasing the birth rate, and life expectancy. In the end, this reduces the costs of companies, if we must say primitive, and improves the business environment, leading to greater and better results.

A responsible business does not separate itself from the locality or region of its presence, actively participates in their development, invests together with the state in schools, universities, the education system, healthcare, in all areas that are very important and sensitive to citizens, and supports social programs.

Of course, a business is primarily a business, not a social institution, as we all perfectly understand. But you know what I'm talking about.

An undoubted priority is still taking care of the environment. It is necessary to work not only to improve the environmental friendliness of enterprises, but also to reduce the accumulated damage to nature, to help regional authorities in projects to improve the environment.

And most importantly, a responsible Russian entrepreneur is a real citizen of Russia, of his country, a citizen who understands and acts in its interests, does not hide assets in offshore companies, but registers companies here in our country, and does not become dependent on foreign authorities.

You know, I've often-we've known many people here for many years, and I've often heard very often-that it's safer there. And now?

We all need to understand that this is the foundation of our existence and the future of our families and children. And only with this understanding, the business will bring satisfaction, a person will be able to fully realize himself.

I am sure that the more our businessmen share these values, the stronger Russia will become, the stronger our economy will become, the faster life around us will change for the better, and, of course, the more authority and public respect entrepreneurs will enjoy.

I propose to establish a special award for the most responsible domestic companies and award its first laureates at the RSPP Congress next year.

In addition, I suggest that you think about the annual publication of non-financial reports for large enterprises. It will tell you what a particular company has done for society, for a particular village, city, region, or country. I just know that the vast majority, almost all of them, have such social programs, but they are known only in a narrow sector. Let's make it public. This will benefit everyone and set a good example for everyone.

The wide disclosure of such information, such stories of creative work, will have a positive impact on the credibility of the entire Russian business, and ultimately on its market and public positions.

I would like to conclude my opening remarks here. Thank you for your attention.

: Dear Vladimir Vladimirovich, Dear colleagues! Delegates to the congress! Guests!

Of course, live communication with ministers, government members, and representatives of the State Council is very important for us. But I don't want to say that this is particularly gratifying, because the Russian President has set many tasks for us both in the short and medium term, but, of course, live communication allows us not only to discuss problems, but also to formulate mechanisms for solving them in the course of such an exchange of views.

Today we are holding the final part of the Russian Business Weeks. I have already informed Vladimir Vladimirovich that over the past few weeks we have held about 20 forums in various areas: economic and social policy, industrial policy, educational policy, and so on. Our platforms were also visited by key ministers and representatives of federal authorities. We found a technology for interaction with State Council commissions, and the chairmen of State Council commissions spoke on our forums on the profile of their commissions.

I think all this shows that the congress, being the final part of the Russian Business Weeks, allows us to record the achievements of these forums and take into account, among other things, the suggestions and recommendations that you have already expressed and that you will give in the course of comments on the speeches of colleagues, Mr Putin.

Now we are returning step by step to the dock-like format of our events. We are talking not only about such large public events with your participation, Mr Putin, but also about more narrow events.

You mentioned that today after the congress you will have a meeting with members of the Government. As far as I know, support tools and industrial policy tools will also be discussed there. By the way, it would be a good idea to invite the Russian Union of Industrialists and Entrepreneurs as a profile participant in such meetings on specific issues on the agenda of such meetings. We have many representatives of large companies who head committees, commissions, and so on.

I will not list the ministers who have already spoken today, they are sitting here in the hall. I can say that this is not just a tribute to the fact that we have a significant public event with the participation of the President: we always meet in a working format, discuss many topics, and find compromises. Therefore, at the congress, at this plenary session, we actually sum up the results of this interaction and outline tasks for the future.

We conduct annual surveys and prepare a report on the state of the business climate, and record our achievements. What are the results of the year?

If we talk about the main thing, it is that in difficult conditions – severe external restrictions and sanctions – it was possible to ensure the functioning of the economy: moreover, not just to continue working and resume where there were obstacles that hindered this work, but to develop the economy.

We have come to the conclusion, and many colleagues have said this, that the main reason why this was achieved is to preserve the basic principles of economic policy: a market economy, fair competition – you mentioned this in your Address to the Federal Assembly, and these are certainly very important areas. There were no attempts to put everything on the rails of a mobilization economy or make chaotic decisions.

Thanks to the Government and legislators, and thanks to your strong focus on supporting private entrepreneurship, free enterprise, a market economy and fair competition, we have managed to preserve not only these basic principles, but also to preserve the accumulated potential and start developing, which you also mentioned in figures.

The RSPP survey, I must say, captures – not only statistics, many people may be suspicious of statistics, but we survey our companies, they have nothing to hide - and indeed the survey shows that investment activity has increased in 2022, and companies are setting quite serious investment goals for 2023.

Of course, this is also facilitated by the work of development institutions and support tools, including the Industrial Development Fund, the Russian Export Center, and VEB.Russian Federation", a number of others. Of course, a balanced monetary policy and the possibility of using the taxonomy mechanism to ease the regulatory conditions of companies ' activities and attracting borrowed resources from banks – all this, I think, will affect the fact that investment activity will continue.

Russian companies are quite successful in implementing import substitution projects and programs, including occupying not only the niches of traditional companies that have left, but also forming their own technological clusters and technological solutions, including bringing them to the foreign market.

You noted the socially responsible behavior of Russian companies, in particular, you proposed to establish an award for openness of companies ' activities in the field of non-financial reporting. The Russian Union of Industrialists and Entrepreneurs has been working for ten years to compile a register of non-financial reports, sustainable development projects, and ESGs. We have recently used foreign words, I don't know if they are all banned now due to the adoption of the relevant State Duma law: whether it is possible to use [the words] "deoffshorization", "redomicilation", ESG and so on, but nevertheless we will translate all this into good Russian. The most important thing is that we have been doing this work for several years. Naturally, next year we will not just find someone to award, we have selection criteria and really have something to be proud of for our companies that are very active in the territories of their presence.

Business is certainly satisfied that the Government has taken adequate and quick decisions to reduce the administrative burden, control and supervisory measures: a moratorium on inspections, effective work on the regulatory guillotine, and we have made very strong progress in the field of licensing activities. All this, of course, shows that the dialogue between business and government is quite active in our country.

You reminded us that we have not just your speech and response, but, indeed, a discussion. We would like you to listen to and comment on a few speeches. One special feature: earlier, when we offered speakers, they were mostly managers and owners of the largest Russian companies, and they are present in the hall. And we decided to show that the Russian Union of Industrialists and Entrepreneurs is not only the largest Russian companies, but also medium and small companies. Our slogan is "Uniting business for the benefit of Russia": we are ready to unite the entire business.

Today's performances will show you that we have a very different business. We decided to" land "many topics – "land" in terms of vision from the regions and from specific enterprises in key areas of our economic development.

The first topic that we would like to bring to your attention is import substitution and ensuring technological sovereignty. Here we would like to give the floor to Sergey Anatolyevich Kogogin, General Director of KAMAZ and at the same time Chairman of the Council of the Association "Association of Automobile Manufacturers of Russia". The company has extremely successful experience in implementing import substitution tasks, including experience in building chains and growing suppliers, including among small and medium-sized businesses.

If you'll excuse me, we'll give Sergey Anatolyevich the floor. By the way, he was elected a member of the RSPP bureau today. (Applause.)

Vladimir Putin: A careerist.

Sergey Kogogin: Dear Vladimir Vladimirovich, Colleagues!

We've had a tough year. More than that, maybe even more, it was due to the shock that we experienced when we were pulled out of global supply chains, the global economy.

I would say that the most important issue I consider is the importance of our ability to work together: no one was left indifferent, everyone was striving to solve the problem-to solve it today, now, and not tomorrow or ever. This applies to us industrialists, and it also applies to members of the Government. Everyone worked as one big company.

In the ministers ' speeches today, many things were mentioned that allowed our industry to work sustainably and, most importantly, to see the future.

Last year's events had a critical impact on our automotive industry. All the foreign companies present here, which we invited, offered them our market in exchange for investment, immediately gathered and left, and our companies are working. If we take KAMAZ, then in the 20 years of my work there has never been such a financial result – I mean a positive one.

The main thing, of course, was to ensure the stable operation of the enterprise. The main challenge, as I said, is the disruption of supply chains. Not only KAMAZ – all automobile companies were integrated into the global automotive technology, and the destruction of supply chains at the first stage led us to shock, some companies were forced to stop. But I think we have overcome this challenge.

The work on import substitution was colossal. I can say that in normal life, if someone told me that this can be done in a year, I would probably laugh and think that the person is not smart. I cite one example: one of our major problems was the abrupt withdrawal of not only car manufacturers from the market, but also our joint ventures in the field of automotive components were also forced to pack up and leave.

For example: gearboxes are a ZF company, a joint venture [joint venture], they worked for 15 years, excellent technologies. After they gathered and left, we had to master about 250 parts in two months, so as not to destroy the work of the enterprise, which is quite complex and difficult. So, about 230 parts were mastered in two months, and the supply of about 20 parts was reoriented to the East. The company is operating today, the quality is good, and KAMAZ did not stop for a single day due to the fault of this company.

As a matter of fact, it was [necessary] for us to resolve the issue of all joint ventures in general, so that they could provide work. All the issues have been resolved, so they are not only working, but today they are 100% owned by KAMAZ, so we have become the owners.

One of the most difficult issues was, of course, modern technology – where we invested for several years: modern cars of the K5 generation. These projects were immediately formed as international and global projects. It took us quite a long time to get the K5 generation cars into production.

I can report, Mr President, that since February we have started production of K5 generation cars at the current production level, and we have tried to pass it not only in order to repeat what we had a year ago. Since we still had to recycle, we offered our customers new consumer properties: lower noise levels, better fuel consumption, and higher engine power. All these issues were resolved by us.

I would like to emphasize that this is probably a feature of our Russian character, that in difficult conditions we are able to consolidate and achieve solutions to unsolvable problems.

In terms of import substitution, I would also like to note that cooperation with development institutions was important. For us – in the automotive industry – the most important thing was probably the interaction with the Industrial Development Fund. This is an effective financial tool, and all decisions were made quickly enough. We probably have a second wave of localization of new products ahead of us, but we will continue to do this anyway. We will probably turn to you, Mr President, over time to recapitalize the fund. All issues have been resolved for today.

It is a very important question to keep up with the level of product and technology in the future. In other words, I believe that we have created the groundwork that allows us to say today that our product is modern, that we are no different, but the entire global economy is being transformed, and the auto industry is not standing aside. It is important that our company should be able to conduct R & D [research and development work] and develop new areas. Here, the grant support mechanisms that we have are also important, of course, so that we can maintain them.

And of course, we must not forget about protecting the market. The working conditions are very tough, and Eastern players come to us. If you measure the size of our market, for example, with the Chinese one: our market for heavy trucks is 75-80 thousand cars a year, there – 1.5 million. The scale is completely different – not to refuse to cooperate, but to create conditions that will allow us to use our position. After all, no matter what you say, the Russian market, even with such strong differences, is still the sixth or fifth in the world – it is enough to sell on cooperation.

Vladimir Putin: And in Europe, Sergey Anatolyevich? Sixth – in the world, and in Europe?

Sergey Kogogin: We are the first in Europe. There aren't that many.

Vladimir Putin: Here.

Sergey Kogogin: There were a lot of important speeches made by the ministers today. I would probably like to highlight the work with human resources. The growth of production volumes and new technological challenges have led to the fact that the need for personnel is constantly growing.

I am generally a supporter of crisis events or difficult situations, I always try to set up my colleagues to shrink the company, but this time it didn't work out. Last year we entered a crisis with 54 thousand people, and finished 2022 with 59 and a half thousand people.

This is not a harmonious growth of personnel, we still tried to achieve this at the main production facilities by increasing labor productivity, and this is the acquisition of additional enterprises. That is, all joint ventures – we became owners, even where we had no control. Within the corporation, we bought out and acquired a number of other companies that allowed us to respect technological sovereignty. It was all going forward.

But the requirements for personnel are growing, because we will have to work on new technologies and increase labor productivity in these conditions. The Minister of Science and Higher Education [Valery Falkov] and the Minister of Education [Sergey Kravtsov] spoke about the programs that relate to advanced engineering schools, and you mentioned this in your Message.

KAMAZ is an active participant in all these processes. We were one of the first corporations to support these areas, we provided 100% funding for this development last year, and we will continue to develop it further.

I would like to share my experience with my colleagues. Higher education, colleges-this is, of course, important, but it is important to start with schools. A few years ago, starting from the 6th grade, we started forming an engineering class as an experiment in one of the schools in Naberezhnye Chelny. I can say –last year was the final year-that 85% of the graduates of engineering classes chose the profession of an engineer and entered technical universities for engineering specialties.

When I was writing with Valery Nikolaevich [Falkov], it was clear that the percentage of those who go to the Unified State Exam to take physics and mathematics is very low, and when you form their worldview of an engineer from the 6th grade, then, of course, everything changes. I also consider the Professional Development program very important.

These are the topics that are important to us today. Any crisis provides additional opportunities. It is important to see how we can use them – I have mentioned the main directions. The time will not be easy, but if we do not relax, but go forward as a team, of course, we will cope with this. We are ready for this.

Thanks.

Vladimir Putin: Can I answer Sergey Anatolyevich?

Alexander Shokhin: Sergey Anatolyevich, you will receive an answer right now.

Vladimir Putin: About the industrial support fund. It really has been working for a long time, several years, and effectively. More than a thousand projects were supported, 1,300, in my opinion, for a total amount of support of 400 billion rubles. But when the difficulties you mentioned arose, the Government made a decision and recapitalized this fund in a timely manner by 120 billion, and the total amount of resources allocated turned out to be a record-more than 140 billion, 144 billion. That is, 120 were recapitalized and 144 were issued, and if my memory serves me correctly, there is only about 70 billion left there, " says my colleague Manturov. And of course, you need to look at the needs of the industries and think about what needs to be recapitalized at some stage, as you said.

But here's what I want to remember. Even before the events of last year, you and I had many conversations, and you told me that your main partners are well – known German companies-they kept looking back at what the famous "princess" across the ocean would say, you know? You told me so yourself, I remember. All the time we looked back at the shouts from Washington and were afraid to take any next step and thought about how to invent some situation, how to figure out how to take this step on cooperation. In the end, it ended, ended the way it is. Maybe it's better to have such certainty already, after all.

Here I recall what? You said that you didn't even think that you would be able to respond so effectively to these challenges. In this connection, I recall a well-known proverb. This will not be offensive to our German partners. As you know, I have a lot of friends there, and all my friends, by the way, have been preserved. My real German friends are still there, we joke about each other all the time, we're neighbors. I'll digress right now: we call cockroaches "prussians", right? So big, red hair. And in Germany they call russen – "rusaki". Mutual jokes always take place between neighbors. But the famous joke is this: what is good for a Russian is death for a German.

It is unlikely that anyone other than those who were brought up on our Russian soil, Russian, would be able to respond to the challenges that you mentioned, really. But these challenges do encourage us to work so effectively, and we are doing it, and you are doing it.

We will definitely think about additional capitalization of the fund. It works well and generally brings real results.

You just mentioned a good financial result. Here, of course, we should all think together about how to maintain quality so that there is no monopoly. We have more than one such enterprise as KAMAZ, and there are others. I know that competition is also developing, and we need to support this competition-this is already an appeal to my colleagues from the Government.

In general, of course, we are happy with your success and wish you further success.

Thank you very much.

Alexander Shokhin: Mr President, I would like to say that last year we established a coordination council in the Russian Union of Industrialists and Entrepreneurs on import substitution, technological independence and technological development and looked at some tools to link technology companies with large customers, state corporations, large private companies, and small businesses.

Several platforms exist in Russia, ranging from state-owned (GIS industry) to independent ones. It turned out that one of the most advanced platforms is an engineering center under the auspices of Innopraktika. Have you probably heard about such a structure as Innopraktika?

Vladimir Putin:Yes, of course.

A. Shokhin: They really have very good practices that allow us to make a link, and not only to order, say, small and medium-sized businesses for large enterprises, but also along the entire chain, starting from project documentation, engineering, and so on. This need for investment, including from the point of view of development institutions, can be linked. Both the Agency for Technological Development can invest in these projects, and the Industrial Development Fund, and other structures.

We are currently engaged in such technological solutions as import substitution based on technological progress.

Vladimir Putin: This was once an initiative of the rector of Moscow State University. I supported it, because it was very important even then to think about combining the capabilities of our scientists and those people who are engaged in promising developments, with the needs of our business and specific enterprises that were primarily looking for possible customers and made purchases abroad, but wanted to support their own manufacturers. This is the meaning of Innopraktika's activity.

A. Shokhin: I would like to continue this topic from the point of view of linking large, medium and small businesses and give the floor to Anton Viktorovich Batakov, founder of the ANT-GROUP group of companies, member of the presidium of the Council of the regional association of employers of the Sverdlovsk region and head of the regional branch of the interregional union "Club of Young Industrialists". By the way, Anton Batakov, in my opinion, was recognized as the best young industrialist by Innoprom and the Ministry of Industry and Trade last year.

Vladimir Putin: Excellent.

Please excuse me before you start… Now Alexander Nikolaevich recalled other opportunities, in addition to the mentioned industrial support fund. Indeed, we are developing various areas. You know about the Government's initiative to create technology clusters – this is also one of the opportunities that will create additional options for business, in addition to the already well-known and working industrial mortgage.

In this direction, in the direction of these technology platforms, clusters, you can also get additional benefits. In my opinion, there are social contributions – a little over seven percent, 7.6. Other benefits are possible there. The Government just needs to work hard on this, make a final decision and put these mechanisms into practice faster. They are in demand and, I am sure, will bring good benefits to the industry.

You are welcome.

Alexander Batakov: Thank you very much, Alexander Nikolaevich, for such an introduction.

Good afternoon, dear Vladimir Vladimirovich, dear Alexander Nikolaevich! Good afternoon, dear colleagues!

Vladimir Vladimirovich, in your Address to the Federal Assembly, you noted that the time has come to strengthen the industrial potential, emphasizing the role of small and medium-sized businesses in this regard.

Small and medium-sized enterprises provide mobility in the market conditions, are connected with large-scale production, create deep specialization and multidisciplinary cooperation of production. Small and medium-sized enterprises are about a flexible and innovative approach, about the introduction of new technologies and about a favorable environment for the development of competition. It is important to create the right business environment where such a business will operate.

Today, there is a request from light and medium-sized enterprises – where and how to place production in order to produce popular products, create new, modern jobs.

Often such enterprises are located in small rented premises on the territories of large factories of the Soviet period, often in disrepair. These industrial sites are being moved out of cities, and residential complexes are being built in their place, but new production areas are not being laid, for small and medium-sized businesses in particular.

There is a practice: no matter what an investor builds for our industry, it turns out to be a warehouse. This is caused by the cost of the warehouse rental rate. And we see the result-the expansion of the retail business, not the production one.

We have a huge range of measures to support the development of industry, but there is no foundation where to implement it. The foundation is the foundation, without the first there is no second.

The existing industrial parks are not suitable for the needs of light and medium-sized production, because they are focused on large businesses, high capacity consumption and are removed from logistics corridors. Small and medium-sized enterprises cannot build a new site on their own due to the lack or insufficient collateral and resources. And it turns out that there is a risk that by 2030 they will remain sitting in "garages", sorry for such a word.

Taking into account the peculiarities of urban development, we consider it possible to offer a universal solution: a project of industrial renovation, a unified system for the construction of multimodal new industrial parks with transformer premises from 300 to 1000 square meters each, where existing light and medium-sized production facilities can be located and new light and medium-sized production facilities can be opened for the production of serial, small-scale, assembly and mass products. Here, small and medium-sized enterprises will be able to quickly adapt to the production of new products, cooperate with residents to produce more complex product groups.

Dear Vladimir Vladimirovich, We have been building similar projects for ten years (for example, in the Sverdlovsk region, we implemented such a project with an area of 25 thousand square meters for the logistics sector) and have become convinced of their significance and demand. In fact, we already have a boxed version of such a project.

Today, together with the Sverdlovsk [Regional] Union of Industrialists and Entrepreneurs, we have formed a waiting list, and there are dozens of such enterprises that are ready to become residents of new industrial parks on their own initiative.

Colleagues, at the same time, I would like to make the following suggestions for consideration.

The first is to consider the possibility of implementing an Industrial renovation project, for example, using public-private partnerships or other tools that would be suitable for implementing such a project, with a simplified allocation of suitable land plots for this purpose.

The second is to make the terms of industrial mortgages accessible and targeted for each participant, increase the term of the grace period of lending from seven to 15 years,and multiply the volume of subsidizing interest rates.

This will make it possible to scale up the construction of new industrial parks in the shortest possible time.

Dear Vladimir Vladimirovich, please allow the implementation of the Industrial Renovation project for the construction of new industrial parks on a systematic, integrated basis. These objects will become part of a modern urban environment with the possibility of implementing the philosophy of clean and modern production, will make industrial professions popular, and make our country, in the end, even stronger and more successful.

Thank you for your attention.

Vladimir Putin: Thank you very much.

Anton Viktorovich, in these industrial parks that you have already mentioned, existing (they are called differently), there are free areas, they are quite large, they are not all occupied.

But I understand that this may not be very convenient for small and medium-sized enterprises, because the conditions are slightly different. And on the sites that are being released from old enterprises, you can certainly implement those projects, as you call them, new industrial parks, probably, and even absolutely possible to do this. But this, of course, needs to be watched. There are many questions that arise here: whose property, whose land, whose enterprises these are, and so on. This should always be dealt with first.

Second: You said that there was a very important remark about what clean production should be. If for some reason an enterprise has ceased to exist in the city center or not in the city center, but somewhere in the city, if we talk about new production in the city, and not about the construction of apartment buildings and other similar structures, then, of course, it should be a clean production that meets not only the goals making a profit, which is very important for any business, but also fits into the urban environment.

But the idea itself is certainly correct, and I will ask the Government and colleagues from the Government to work together with the regions of the Russian Federation on this issue. Here the problem is complex, but if you work on it properly, deal with it, then, I think, the result can certainly be achieved.

Alexander Batakov: Thank you, Mr President. More from us…

Vladimir Putin: I'm sorry, but as far as benefits are concerned, extending the terms of existing benefits and introducing new ones – this is, as you understand, a separate topic. This is, of course, the economic block of the Government, the Ministry of Finance, first of all, of course, must be worked out. But I ask my colleagues to do it.

A. Batakov: Thank you very much. thank you.

Alexey Shokhin: Mr President, Sergey Anatolyevich Kogogin has got into the subject that we agreed that the next speakers would discuss-the shortage of highly qualified personnel. But it is clear that this is a real problem for all enterprises, both for large ones like KAMAZ and for the regions.

But I would like to offer one more cross-section to look at and give the floor to Andrey Vyacheslavovich Dmitriev, manager of METAVR LLC, chairman of the regional public organization for the development of entrepreneurship "Union of Entrepreneurs of the Tver Region".

Andrey Vyacheslavovich, please.

Alexey Dmitriev: Dear Vladimir Vladimirovich, Alexander Nikolaevich! Participants of the congress!

Vladimir Vladimirovich, let me thank you for your constant attention to the position of the Russian Union of Industrialists and Entrepreneurs and to the initiatives that are being developed on our site. We see that you are paying close attention to this issue in order to develop the economy and create sustainable economic growth.

Alexander Nikolaevich, thank you very much for holding such a dialogue: business and the state. You can also hear the regional agenda. We can always count on you to solve our problems.

Today we have already heard a number of speeches by members of the Government. As part of my report, I would like to emphasize the openness and constructiveness of the Ministry of Education, in particular Sergey Kravtsov, on personnel issues and on your Message to the Federal Assembly, within the framework of the Professionalism program.

According to the results of a survey among members of the Russian Union of Industrialists and Entrepreneurs, the majority of colleagues identify the problem of personnel training as the most significant. This is about 70-75 percent of respondents participating in the congress today. This is an investment in human capital, it is an investment in the growth of companies.

When you addressed the Federal Assembly, you described this task as "Professionalism". Business supported it, and moreover, today the Ministry of Industry and Trade [Denis Manturov] and the Ministry of Education [Sergey Kravtsov] also gave a speech saying that the regions are actively joining this program: starting from 43, we expect 55 participating regions. From the point of view of industrial partners, the growth is from 200 to 370. Accordingly, the money that was allocated in that volume – we heard that, perhaps, this program will be recapitalized. This makes us all very happy.

In particular, I cannot but note that the investment tax deduction that was adopted at the end of 2022 created a certain basis for this program to include not only state corporations and large businesses, but also small companies that solve the issue of targeted training of specialists for themselves. These are mainly robotics, information technology, and precision engineering.

In this regard, I would also like to note that at the moment – since the figure is 43 regions, and this year there will be more of them - [they] are just adjusting their regulatory framework in order to actively enter the Professionalitet program and achieve the task you set: in the next five years – one million highly qualified specialists of working specialties.

Leading regions are already showing positive experience. During the congress, we discussed the successful experience of Nizhny Novgorod, St. Petersburg, Kaluga, Yekaterinburg, and Kazan. These regions are reference regions.

In the presentations that we saw today, both Denis Valentinovich Manturov and Igor Levitin pointed out the "Professionalism" program as the basic one for solving the problem you set.

In this regard, there is a suggestion. In order for businesses to be more actively included in the program of vocational training – secondary vocational education, so that companies can become real industrial partners, we propose to actively involve highly qualified personnel in the field of vocational education and support them with social mortgages.

The social mortgage is the mechanism that will apply to teachers and masters of industrial training, colleges, vocational schools participating in the implementation of the federal program "Professionalism", for the period of work in a basic educational institution.

The topic, of course, needs to be worked out in detail. But taking into account the positions that were expressed today,I think that we will certainly find a solution with the relevant committee. Moreover, Andrei Ilyich Komarov spoke at the last congress on the program "Professionalism", when it was just beginning and when the first initiatives were being implemented. Accordingly, we are confident that the effect of investing in vocational education will more than cover any costs, especially since we regard them as investments. This is the first one.

Second. We also understand that the system of secondary vocational education and the effectiveness of implementing the Professionalitet program directly depend on the level of vocational guidance and professional training of schoolchildren.

Today there is a comprehensive program for early career guidance. Students are taught how to use their knowledge in specific professions, such as chemistry, physics, and computer science classes. During extra-curricular hours, students visit businesses, mostly in the form of guided tours. They are also given lectures. There are very successful projects "Ticket to the future", "Laboratory of the Future", "Abilympics" championships, "Professionals".

We have also just discussed with Sergey Sergeevich [Kravtsov] that a career guidance project will be presented in Yekaterinburg next week. It is very good that we are now starting to introduce uniform rules in the career guidance process and place a stronger emphasis on the regional economy, on the specifics of the regions.

In the real situation, career guidance today, of course, looks different: different regions solve this problem based on the resource that they have. For example, about the Tver region: a very successful program for the holiday practice of schoolchildren. More than eight thousand children took part in this program. The average duration of work – this is done within the framework of an employment contract, by the way, everything is done-is 20 working days. This project is held under the auspices of the Governor. We see a threefold increase over the past three years, eight thousand – this is quite a good result.

I also consider it important to recall the practice that was laid down in the Soviet period-these are enterprises of educational and production complexes or complexes. Now, of course, the situation has changed: we have the Professional Development program, we have industrial and educational clusters, and we have industrial partners. And we can more actively involve students in the "Professionalitet" program for early career guidance and vocational training – so that they actually get their first skills on the basis of colleges and vocational schools. By the way, we already have such experience. These are also regions where everything is obviously not bad with the material base.

In this regard – a suggestion. I propose to review the successful experience of the regions, introduce best practices, and build a career path "school – open source – enterprise" with the participation of industrial partners for the organization of primary training in working professions. As a result, each student will be able to choose their career path and get a state-issued professional certificate. This will also allow young people to find a job more quickly and be more competitive.

Dear Vladimir Vladimirovich, our combined proposals should lead to higher efficiency in achieving the goal you set within the framework of the Professionalism program and the task within the framework of technological sovereignty.

Thanks.

Vladimir Putin: Andrey Vyacheslavovich, both questions are important, both topics that you have touched upon.

First – it concerns the possibility of providing social mortgages to teachers working in the field that you have just mentioned, training middle-level specialists.

I don't remember how much, if my colleagues remember, we have about 500 thousand people working there, in my opinion, more than 500 people in general, and the average salary level there is, so to speak, not the highest – about 47 thousand on average.

So, of course, for this category of teachers – and we need qualified people here – a social mortgage would be important, but it is also important for the construction sector, because it is an additional support. This, of course, all needs to be worked out – this is due to budget constraints and the fact that the budget has been adjusted. But for the future, we need to see what can be done. In any case, I ask my colleagues from the Government to work on this topic.

The second part of your presentation was devoted to early career guidance. But we are doing this and, moreover, schools have certain programs for students from the 6th to the 11th grade-the program is wide and large, including those related to practical training at enterprises. But here, I would like to appeal to representatives of the business community, we need to work together.

You remembered the practice of the Soviet Union. I did not participate in such programs, but I am sure that today this practice in modern enterprises, of course, could be much more interesting than in Soviet times – using modern means of communication, information, computer games, and so on. It is possible for school-age children to make this practice such that they would run at a run. We need to think about it, it is not difficult to do and not expensive. Of course, we need to come back to this.

Do you need to make any additional decisions within the framework of the school programs that already exist? I honestly don't know.

Sergey Sergeyevich is here with us? Sergey Sergeyevich, do you need to do something?

Alexey Dmitriev: Mr President, may I comment?

Vladimir Putin: Yes, please.

A. Dmitriev: My colleagues and I looked at the number of teachers employed at proftech.

Vladimir Putin: About 500,000.

A. Dmitriev: About 40 thousand.

Vladimir Putin: So, zero should be removed from what I said. It seemed to me that in the whole circle-somewhere under half a million people who are somehow involved in this work.

Alexander Dmitriev: Maybe so.

Vladimir Putin: Sergey Sergeyevich, please.

Sergey Kravtsov: Dear Vladimir Vladimirovich,

I want to say that it is really thanks to your support and the initiative that you voiced at the party congress…

Vladimir Putin: Sergey Sergeyevich, please excuse me.

(To A. Dmitriev.) This is very important – what you just said: 40 or 500 [thousand] - the money that needs to be allocated for this purpose depends on it. When we say that only 40, and all the other 450 thousand seem to have nothing to do with this, problems may arise here. Therefore, it is necessary to deal with this.

Sergey Kravtsov: After all, 40 thousand rubles, Mr Putin.

Vladimir Putin: He wants a mortgage. (Laughter.) And if you ask Siluanov now, he will say-a million.

S. Kravtsov: As for career guidance, there are really serious programs starting from the 6th grade, very good experience in a number of regions. Of course, this work should be strengthened, because at this age there is already an idea of the future profession. Of course, the participation of the Russian Union of Industrialists and Entrepreneurs and colleagues in this work is very important. We very much hope that the young people will really see the opportunities of the domestic industry and the domestic economy.

We work very closely with the Russian Union of Industrialists and Entrepreneurs, with Alexander Nikolaevich. On March 22, we will discuss a comprehensive model of professional guidance, a new stage of systematic work based on the domestic industry, on domestic industries. This, in my opinion, is very important, and we will continue this work here.

Thanks.

Vladimir Putin: Do you need any additional programs in schools?

Sergey Kravtsov: To date, all the programs have been adopted, the main thing is to implement them now, and the main thing is to make them really interesting. Maybe some computer programs, more interactive. We have already done it for high school students – we have a project "Ticket to the future", and for children of the 8th and 9th grades we will think about it-we will implement it within the framework of our solutions.

Vladimir Putin:Good. Thank you very much.

A. Shokhin: I didn't understand, 40 thousand will be somehow covered or not?

Vladimir Putin: Alexander Nikolaevich, this is the whole point, because some colleagues believe that there will be at least half a million such teachers, or maybe a little more – 550 thousand – people who are somehow attracted to work in this field. Then it's just budget money. And if 40 thousand, then this is other budget money. But if we say that only 40, then the rest, somehow involved in this case, will feel like strangers at this celebration of life-this may not bring general satisfaction. In short, you need to think about it properly.

Alexey Shokhin: Maybe we should first start using people who have the status of a mentor, as you mentioned.

Vladimir Putin: In principle, the idea is correct, I absolutely agree with this. Of course, we need to create incentives for people to enter this profession. We will definitely think about it.

Please excuse me, but I would like to return to what Sergey Anatolyevich Kogogin started with.

Denis Valentinovich, when will these new technology platforms start working? This is very important. Tell me again, what are the preferential conditions there, except for seven percent on social contributions?

Dmitry : Dear Vladimir Vladimirovich,

We have already agreed on almost all the regulations. Moreover, within the framework of the cluster platform, enterprises have the option: either go to the full format, and what you said is included, benefits for social contributions; but the main measure of support today under the new cluster platform is the interest rate on loans up to five percent per annum.

Moreover, we have divided [projects] into three groups: profitable, medium-yield and low-yield, or even those that are in the zone of negative profitability – for such projects, separate decisions will be made by the Government, or they will be subsidized so that this project is implemented if it is strategic and necessary for the country. We have already collected a total of about five trillion applications for all projects to date.

You also spoke about industrial mortgages today. 40 companies have already been supported.

Today, my colleague spoke about industrial parks. In fact, all the tools have already been developed. The only question that was raised today was the extension of the credit grace period to 15 years. I think that for now we will limit the format to seven years.

Moreover, since last year we have made a decision with the Ministry of Finance: we will compensate private companies that form industrial parks for up to 75 percent of the costs incurred in creating this infrastructure. That is, if it is state property, a subject or municipality, then all one hundred percent is compensated, if it is private-then 75 percent. I am referring to the return of federal taxes to those residents who will be placed there.

This measure is in high demand. Every year we see an increase in the number of industrial parks across the country, so we will continue this movement, including through industrial mortgages. This will expand opportunities primarily for small businesses, because someone needs 500 meters, and someone needs several thousand meters. Therefore, this measure will be in demand for small and medium-sized businesses.

Vladimir Putin: Our industry support fund gives out money at 1-3 percent?

Dmitry Manturov: Yes. Today we have ten programs. Those programs that fit into import substitution - first of all, what Sergey Anatolyevich [Kogogin] said about the automotive component base-are one percent per annum.

Vladimir Putin: New technology platforms – will they be issued at five per cent?

Dmitry Manturov: Five percent are bank loans.

Vladimir Putin: But there are other benefits, including social security contributions.

Dmitry Manturov: Yes, including this. But this is as an option.

There is also compensation through subsidies for pilot batches, that is, when a company has developed some new equipment and is just entering the market, we compensate the main part of the costs of producing this pilot batch.

Vladimir Putin: You said that all the decisions are almost ready. And when will they be adopted in their final form?

Dmitry Manturov: Funding is already starting in April. As I said, we have already started collecting applications since November last year, without waiting for all the regulations.

Vladimir Putin:Good.

I would like to draw the attention of my colleagues to the fact that this is a good, I hope very effective, effective tool, so please take a look at it.

Thanks.

Alexander Shokhin: Thank you.

Vladimir Vladimirovich, in continuation of the topic, I would like to give the floor to Patimat Magomedovna Gamidova, head of the Dagestan regional organization of the Russian Union of Industrialists and Entrepreneurs, General Director of Monarch-D LLC.

P. Gamidova: Good day!

Good afternoon, hall! Good afternoon, Chairmen!

I am glad to welcome you all today.

Special thanks to Alexander Nikolaevich for the opportunity to talk about the work on the region and the global issues that are currently facing the development of our region, which I directly represent.

First, about the benefits that the current situation brings, although it is very ambiguous, I understand, but nevertheless.

Due to the ongoing economic and other movements within the country, the issues of new logistics directions have become very relevant. One of them is "North – South", where cargo traffic along the international transport corridor is growing daily. This direction is gaining more and more momentum in its actualization in connection with the imposed sanctions.

At the same time, the port of Makhachkala has a great potential in terms of receiving, sending and processing cargo. Additionally, work is underway on the reconstruction of a new specialized terminal, on internal re-equipment, and on automation. But that's not enough today.

In addition, work is also increasing on the reconstruction of the Derbent – Azerbaijan – Dagestan border crossing points, which directly lead to the country's infrastructure. All checkpoints have been reoriented and operate around the clock. Construction works are underway to expand the terminals without stopping the operation of existing terminals, which makes it possible to increase the total capacity of border checkpoints on the Russian-Azerbaijani border by 2.5 times.

Another important part of the North – South corridor is the federal highway R – 217, which is currently undergoing major repairs, and 53 kilometers will be put into operation by the end of 2023, and 25 more in 2024. After the work is completed, 140 kilometers of the highway will be four-lane on the territory of the republic.

The direction is currently very busy, because in addition to cargo transportation, which is carried out along the main artery, the pace of tourism development in the region is also growing, which is due to the same sanctions.

Design and estimate documentation for the construction of the Khasavyurt and Derbent bypasses with a length of 21 and 33 kilometers has also been developed. Congestion, of course, will decrease, this will relieve the transport infrastructure, and we expect, again, an increase in the flow of tourists.

With the borders closed and the lack of opportunities to ensure trade turnover in the volume that was previously with Western countries, the new route that ensures the development of trade turnover and logistics of product supplies is the North – South transport corridor. This opens up new niches for business development in the republic, which, in turn, is ready to work in this area.

But there is a risk of a shortage of personnel in our region. In principle, this has been a fundamental problem of the region for quite a long time, but such specialties as logistics and tourism are quite new for us today.

In this regard, I would ask for help in forming a mechanism with the participation of representatives of the Russian Union of Industrialists and Entrepreneurs, with companies in the region to ensure coordination of educational institutions for the implementation of the specialty "logistics" on the basis of secondary special and higher education, to launch a high-quality specialty, taking into account the development of the North – South transport and logistics infrastructure.

We do not ask for the development of new individual programs. We ask you to pay special attention to the need to coordinate work in our region with additional strengthening of possible platforms, online programs for retraining and advanced training of personnel, specialists [in institutions of] secondary and higher education.

That's all I wanted to say.

Vladimir Putin: Patimat Magomedovna, first of all, the North – South transport corridor is a very important topic that you have mentioned. We have long been engaged in all logistics related to the eastern direction, and in principle, the final point of the route ["North – South"] is also the east. Unfortunately, we didn't make all the investment decisions that we considered necessary in a timely manner, but we didn't fully implement them. In fact, it's a pity that they didn't do it. Now it's clear – in hindsight, we're all smart - but now it's clear that we've lost some time. But we will make up for it, nothing irreparable happened there.

As for the North-South route, this is an additional opportunity to expand the flow of cargo just to the east. Why? Because it is from St. Petersburg just across the territory of Dagestan…

P. Gamidova: Along the entire North Caucasus.

Vladimir Putin: Then through the territory of Azerbaijan, access to Iran and then to the ports of the Persian Gulf, and there - to the Middle East, the Far East, and the Asia-Pacific region. This is Iran itself, and then India, and China, and the entire South-Eastern region.

There are several possible routes. The first route is just Dagestan, then Azerbaijan, Iran and access to the Persian Gulf. Or to the ports of the Caspian Sea on Russian territory, including Dagestan, and then to the port of Iran, and then further-in the direction of the Persian Gulf. And the third route-again through the territory of Russia, starting from St. Petersburg, then Kazakhstan, Turkmenistan and again the entrance to the Iranian territory-it is more complicated, but also a possible option.

The first one, if you go by sea, is still working, but we need to create appropriate conditions together with our Iranian friends and partners, including terminals for receiving and sending cargo already on the Iranian coast.

As for the route you mentioned, this is if you go through the territory of Dagestan, then go to Azerbaijan and then to Iran. The cities of Astara and Rasht (Astara on the territory of Azerbaijan and Rasht on the territory of Iran), in my opinion, are 162 kilometers away, where there is no railway. And then it is necessary to complete this piece, 162 kilometers, to the entrance to the transport and railway networks of Iran.

We support this project, Iran supports the project, and Azerbaijan supports this project. It is very interesting not only for us, but also for all participants in world trade, because it is a significant addition to the Suez Canal and the Black Sea Straits. This simply reduces the cost of the route, which means that the final price of the product will be cheaper. This is something that many global trade participants are interested in and would like to take part in.

I want to emphasize this: everyone agrees. Despite the complexity of geopolitical scenarios and various contradictions between the countries of the region, which always arise between neighbors, everyone agrees that this route should be built.

Now we just need to understand how fast we will do this, what are the final sources of funding. But we will find them, and there is an opinion that we do not need to attract them from somewhere outside. In practice, we are able to finance this construction from scratch, which [on the site] Rasht Astara must be built.

The question of broad or narrow gauge – 1520 or 1435-is a theoretical question in principle, we have generally solved it, and everyone agrees with our decision. You just need to get started. I ask everyone involved in this issue in the Government to speed up this process. We will try to do this as quickly as possible.

In my opinion, the first part is about 1700 kilometers, there are 1500-1600 [kilometers], and it will cost about the same: somewhere between a billion five hundred and a billion six hundred. We need to find this money, we can find it inside the country by and large, we can find it from our potential investors.

By the way, I would like to appeal to all those present here: keep in mind that this is a very good project, cost – effective, preferential, and many of our partners, including in the Arab world, are showing the most active interest in this. It will work – just like the Suez Canal, the Bosphorus and the Dardanelles. This will work. Its passed, started, started again, passed again, and the goods will go, one hundred percent, and will always be in demand.

Therefore, we need to find sources and consolidate sources of funding for this project. It may be interesting for everyone. And the government just needs to think about how to add up this pool of potential investors.

To be honest, I would like it to be primarily Russian investors. Why should we miss out on such projects? A cost-effective, good project.

I repeat, even in spite of the geopolitical situation and difficulties, everyone agrees. We will do it.

As for personnel training, of course, it is important. But I think we already have…

P. Gamidova: There are programs.

Vladimir Putin: There are specializations and programs available at various universities.

P. Gamidova: There are online platforms.

Vladimir Putin: The only question is that it should be organized directly on the territory of Dagestan. Maybe make some branches.

I don't know, do we have the Minister of Science and Education here?

Valery Nikolaevich, please.

V. : Good afternoon, dear Vladimir Vladimirovich!

We have several universities on the territory of Dagestan, and we will now look at them in detail. There are corresponding programs of both basic higher education and specialized ones, I mean master's degree programs. We will help those universities where logistics is already well established in terms of educational programs, we will look at the specifics of Dagestan and will definitely organize it. As for budget places, there are no difficulties there, but even if they exist, we will quickly solve them.

Vladimir Putin: Okay, thank you very much. Please pay attention, because such specialists will be really needed there.

The President of Azerbaijan and I said: Azerbaijan has taken a lease, that is, it is ready to work not only on its own territory, but it has taken a lease on the territory on the Iranian side, and the Iranian side has agreed to this – it has leased it to the Azerbaijanis. The President said to me:"We are ready to do this together with Russia." Please, also a very good investment. I know that a logistics center is being built there, on the border of Azerbaijan and Dagestan, and I think it should start working now, but this is a promising project within the framework of the North-South project.

Once again, I want to draw the attention of my colleagues, who still have enough money and are "sitting" in offshore companies, and many do not know what to do with it. I don't have any complaints right now – that's how life has turned out. But where to put the money, where to invest it? Many in the Arab world are trillionaires, and this is a problem for them. They sit like minority shareholders in some developed economies, they are not allowed out, and at any second they will be slapped again – and everyone understands this, the threat to them remains. And everyone is looking for good projects – this is a good one. Think about it.

And let the Poole government help you. Really, I say, think about it – a good project: promising, stable and marginal.

As for the training of personnel, the Minister said: Let's work together.

P. Gamidova: Thank you very much.

Alexander Shokhin: The Minister said – the Minister will do it.

Vladimir Putin: Yes, 100 per cent.

Alexey Shokhin: We have such an approach – we wanted to diversify the list of speakers a little, and now I would like to give the floor to Matteo Valik, General Director of Biesse Group LLC. This is an Italian company that operates in Russia and is not going to leave the Russian market. She would like to show the possibilities of development and some problems, probably.

Vladimir Putin: Buongiorno [Good afternoon].

Mikhail Valik: Dear Mr. President, Dear Alexander Nikolaevich, Dear colleagues! Good afternoon, good evening already!

As everyone has already understood, I am a foreigner. I was born in Italy, and I have long been a Russian citizen, and I am especially proud of this now. Russia gave me a family, children and friends, and now I perceive it as my homeland.

Over the past year, my team and I have made every effort to maintain our Russian business despite certain difficulties.

Besides me, a lot of foreigners want to continue developing their business in Russia, but, unfortunately, not everyone knows what is really happening in our country right now.

Mr. President, Alexander Nikolaevich, I sincerely believe that if we gave people abroad the opportunity to get to know Russia better, more people would like to support our development. This is also a great way to fight the deception that is spreading in foreign media every day.

In the last few centuries, the whole world has enjoyed the technologies and innovations of Russian scientists, and Russia has the absolute right to use foreign technologies. I believe that we need to create even more comfortable and attractive conditions for foreign businesses, scientists and students who will help us in our development now and in the next generations.

In particular, I suggest that those companies that have decided not to leave the Russian market and continue to invest here should make the procedure for making decisions on paying dividends more predictable – this is very relevant today.

Mr. President, thank you very much for your time and attention. And thank you to Alexander Nikolaevich for such a unique opportunity that you gave me today.

Thanks.